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Suppose a Tax Cut Affected Aggregate Demand and Aggregate Supply

Question 73

Multiple Choice

Suppose a tax cut affected aggregate demand and aggregate supply. The shift in aggregate supply would make the


A) price level and real GDP change by more than otherwise.
B) price level change by more than otherwise and real GDP change by less than otherwise.
C) price level change by less than otherwise and real GDP change by more than otherwise.
D) price level and real GDP change by less than otherwise.

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